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Finally, we are in 2021, the new year where we are seeing hopes of new opportunities and fast growth. 2020 was the mysterious year wherein the March, the entire world was in extreme pessimism mode but we witnessed a strong comeback whether it is economy, health system, humanity and the most important our market which surprised everyone by its stellar move.
Nifty & Sensex rallied almost 90% from March lows and they ended 2020 with a decent gain of 15%. The market begins 2021 with new heights where Nifty hits high of 14050 while Sensex hits a high of 47980. At the end of the week, Nifty and Sensex ended with a gain of about 2%.
FIIs are continuing their buying trend however the momentum has slowed down due to the New Year holiday where they bought around 7493cr in the cash market last week while DIIs are still in the selling mood where they sold around 4171 Cr.
If we talk about F&O data then FIIs’ long exposure in index futures stands at 75% which is an overbought territory and it means if something negative comes then we may see sharp correction because the market is not perfectly hedged. PCR stands at 1.37 mark which is a comfortable level.
Nifty is trading above the psychological mark of 14000 where 14200 is an immediate hurdle while 14350 will be the next hurdle. On the downside, 13950 is an immediate support level while 13800-13750 will be a critical demand zone because below 13750, we can expect any serious profit booking.
Banknifty is also trading above its important hurdle of 31000 while it is facing some resistance in the 31500-31650 zone. If it manages to cross the 13650 mark then we can expect a rally towards 32500/33000 levels. On the downside, 31000-30800 is an immediate demand zone while 30000 will be the critical support level.
"If you need a financial advisor or counselor look for someone with the heart of a teacher".
Financial Planning is a key aspect in today's world of inflation every one wishes to maintain a healthy situation of wealth in his life. With regular earnings, one can maintain the household expenses & other necessities. But there are some other charges also which need to be met out of the same earning itself.
But there are some unexpected expenses like medical expenses any other casualty which requires a large sum of money and which is totally unplanned. How all this can be done? A small question arises in the mind of every salaried person because these all need to be planned with the current earning which can meet all the requirements.
Financial planning refers to the process of streamlining the income, expenses, assets & liabilities of a household to take care of both current & future needs for the funds. It is thus a process that enables better management of the personal financial situation of a household.
It works primarily through the identification of key goals and putting in place an action plan to realign the finances to meet those goals. It is a holistic approach that considers the existing financial position, evaluates the future needs, puts a process to fund the needs, and reviews the progress.
The main task of an advisor is to ascertain the needs of his clients to understand his requirements and link them to various financial products available. As we know everyone having a different approach towards life, so an advisor needs to plan all the factors & suggest them the instruments accordingly. An advisor is a person who understands the importance of all financial products on one hand & the needs of the client on the other side.
The following are the primary reasons why financial advisers are needed:
To maintain personal finance many people due to there busy schedule not having time to maintain there own finance due to lack of time & there other professional tasks, As financial planning requires time & attention, to meet the future needs. As many verities of asset classes are available a person needs to understand them first as per the future objective.
Estimating financial goals, finding suitable products, and arriving at suitable allocations to various assets require specific expertise and skills which may not be available in most households.
Asset allocation is a vast approach one should first understand the needs and requirements of the client then plan to manage it as per the requirement of the client. A professional adviser with capabilities to compare, evaluate, and analyze various products enables making efficient choices from competing products.
Financial planning is a dynamic process it requires proper attention, market situations kept on changing an advisor needs to reallocate the sum as per the situation demands.
Financial planning covers all areas of the client's financial needs and will result in the achievement of each of its objectives. A financial advisor effectively manages its finance with its short and long-term outlook towards it.
With the analysis of objective and advisor make sure about the desire of the client there perspective and objectives of investments. A salaried individual always wishes to have a secure retirement which cannot be done without proper planning and which also requires correct execution of it. A financial advisor is a person who observes the risk capacity and after understanding that he delivers as per the requirements.
An adviser assesses the financial position of the person by bringing up together its income & expenses, his source of income, stability, and growth determine how he may be able to manage current household expenses. His income should be apportioned to expenses and saving for the future.
His income should be allocated in such a manner that it should meet the household aspirations and would lead to a secure lifestyle saving and live comfortably. If expenses are higher then income, his future earning will get affected as to meet the current requirements he needs to borrow funds which seems an easy way to full fill current desires.
This repayment of the borrowing over a period in the future reduces a part of the future income and apportions it to funding the asset that has been bought with a loan. Financial advisers collect information about the household's finances and analyze them in various ways to draw various inferences about their financial position.
Financial advisers help households plan their liabilities efficiently. Evaluating which assets or expenses can be funded by borrowings is a function adviser can perform.
They can advise households about how to finance their assets, how much to borrow, how to provide for repayment, how to ensure that credit scores are not unfavorably impacted. Advisers help households to deal with their borrowings taking into account their need and ability to repay debt.
Insurance is a risk transfer mechanism where a small premium payment can result in payments from the insurance company to tide over risks from unexpected events. The temporary loss of income from disabilities and permanent loss of income from death can be covered with life insurance products.
Health and accident insurance covers help in dealing with unexpected events that can impair the income of a household while increasing its expenses on health care and recuperation. General insurance can provide covers for loss and damage to property and other valuables from fire, theft, and such events. Insurance planning involves estimating the losses to the household from unexpected events and choosing the right products and amounts to cover such losses.
A crucial component in financial planning and advisory is the funding of the financial goals of a household. Investment planning involves estimating the ability of the household to save and choosing the right assets in which such saving should be invested.
Investment planning considers the purpose or financial goals for which money is being put aside. The focus is on how much money is invested in which particular asset class to deliver the expected return within the risk preference of the investor.
A financial advisor should be able to assess the impact of taxes on the finances of the household and advice appropriate saving and investment options. The post-tax return of financial products will have to be considered while choosing products and estimating holding periods.
The Taxability of various heads of income such as dividends, rents, and interest differ. The treatment of return if accumulated, rather than paid out periodically, varies. The taxability of gains differs based on the holding period. A financial adviser should bring in these aspects while constructing a plan for an individual.
The National Stock Exchange and Bombay Stock Exchange are open on the weekdays from Monday to Friday and are closed on Saturday and Sunday. Here is the complete list of all trading holidays for NSE and BSE.
HolidaysDay DateRepublic Day Tuesday26 January 2021Mahashivratri Thursday11 March, 2021HoliMonday29 March, 2021Good FridayFriday02 April, 2021Dr. Babasaheb Ambedkar JayantiWednesday14 April, 2021Ram NavamiWednesday21 April, 2021Eid-Ul-Fitr (Ramzan Id)Thursday13 May, 2021Bakri IdWednesday21 July, 2021Muharram Thursday19 August, 2021Ganesh Chaturthi Friday10 September, 2021DussehraFriday15 October, 2021Diwali * Laxmi PoojaThursday04 November, 2021Diwali BalipratipadaFriday05 November, 2021Guru Nanak JayantiFriday19 November, 2021
For BSE India, Muhurat Trading shall be held on 04 November 2021 (Diwali - Laxmi Pujan). The time of Muhurat Trading shall be notified subsequently. The exchange may change any of the above holidays, for which a separate circular shall be issued in advance.
Holidays DayDateMorning SessionEvening SessionNew Year DayFriday01 January, 2021OpenClosedMahashivratriThursday11 March, 2021ClosedOpenHoliMonday29 March, 2021ClosedOpenGood FridayFriday02 April, 2021ClosedClosedDr. Babasaheb Ambedkar Jayanti Wednesday14 April, 2021ClosedOpenRam NavamiWednesday21 April, 2021ClosedOpenEid-Ul-Fitr (Ramzan Id)Thursday 25 May, 2021ClosedOpenDiwali - Laxmi PujaThursday04 November 2021ClosedOpenDiwali - BalipratipadaMonday05 November, 2021ClosedOpenGuru Nanak JayantiMonday30 November, 2021ClosedOpen
HolidaysDayDateMahavir JayantiSunday25 April, 2021Maharashtra DaySaturday01 May, 2021Independence DaySunday15 August, 2021Mahatma Gandhi JayantiSaturday02 October, 2021ChristmasSunday25 December, 2021
The list of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for 2021 includes all the national holidays and regional public holidays. The above information is important for those willing to trade financial instruments through the stock exchange.
NSE and BSE have five working days a week i.e Monday to Friday. However, During Muhurat Trading (if Diwali falls on a weekend), certain platforms can remain open for a specific period of time.
कच्चे माल और गैसोलीन के अमेरिकी भंडार में गिरावट के कारण कच्चे तेल के भाव मे तेज़ी आई है। साथ ही, ब्रेक्सिट सौदे के संकेत ने निवेशकों की जोखिम की क्षमता बढ़ा दी है। क्रूड और ईंधन के साथ-साथ संभावित ब्रेक्सिट सौदे के कारण डॉलर मे दबाव बना रहा, जिससे कच्चे तेल के भाव को सपोर्ट मिला है।
डॉलर मे गिरावट अन्य मुद्राओं के धारकों के लिए ग्रीनबैक की कीमत को अधिक किफायती बनाता है। लेकिन, कोरोनोवायरस के एक नए संस्करण पर चिंता का विषय है और छुट्टी के मोड में निवेशकों के साथ तेल बाजार शांत भी है।
ऊर्जा सूचना प्रशासन (ईआईए) ने बुधवार को कहा कि कच्चे तेल की सूची सप्ताह में 562,000 बैरल घटकर 4995 लाख बैरल तक गिर गई है। ईआईए ने कहा कि गैसोलीन के स्टॉक में 10.1 लाख बैरल की गिरावट आई, जबकि डिस्टिलेट स्टॉकपाइल्स 23 लाख बैरल से अधिक तक गिर गए है।
तेल की कीमतों ने उन खबरों से भी समर्थन हासिल किया, जो ब्रिटेन और यूरोपीय संघ के एक संकीर्ण व्यापार समझौते को तोड़ने के लिए थे। वैश्विक शेयर बाजार में एक पलटाव के कारण निवेशकों के बीच जोखिम की क्षमता में भी सुधार हुआ है, जिससे लगता है कि कोरोनोवायरस के एक नए संस्करण पर डर थोड़ा कम हुआ है।
कुछ निवेशक तेल की मांग सुधरने के बारे में असमर्थ है, क्योकि अमेरिकियों को फिर से चेतावनी दी गई है कि वे क्रिसमस के लिए यात्रा न करें क्योंकि अस्पतालों में मरीज बढ़ सकते है।
आपूर्ति पक्ष पर, इस सप्ताह अमेरिकी ऊर्जा फर्मों ने लगातार पाँचवें सप्ताह तेल और प्राकृतिक गैस रिसाव मे वृद्धि दर्ज की है। तेल और गैस रिग काउंट, भविष्य के आउटपुट का एक प्रारंभिक संकेतक है और बेकर ह्यूजेस के मुताबिक, सप्ताह में तेल रिग काउंट 2 से बढ़कर 348 तक पहुंच गया है।
घरेलु वायदा कच्चे तेल के भाव इस सप्ताह सीमित दायरे मे रह सकते है। इसमें 3330 रुपय के निचले स्तरों पर सपोर्ट है तथा 3700 रुपए पर प्रतिरोध है।
The commodity market plays a crucial role in the global economy, including India's, by enabling the trading of essential raw materials like oil, gold, wheat, and more. It is a market where buyers and sellers meet to exchange commodities at a certain price, much like the stock market. Commodities form the backbone of the global economy, and the commodity market serves as a vital platform for their trade. In this blog, we will explore the importance and significance of the commodity market in simple terms.
A commodity market is a place where raw materials or primary products, called commodities, are traded. These commodities are divided into two major categories:
Commodity markets allow producers, traders, and investors to buy and sell these products, often through contracts known as futures, which we'll explore further in this blog.
The commodity market is crucial for discovering the fair price of goods and services. Prices in the commodity market are determined by supply and demand. For example, if there’s a shortage of oil, its price goes up, and if there’s a surplus of wheat, its price may go down. This open and transparent pricing helps industries plan their production and helps consumers better understand market conditions.
Producers, traders, and investors use the commodity market to manage risk. Since commodity prices can be volatile (fluctuating based on various factors like weather, political events, or economic conditions), traders use futures contracts to lock in prices in advance.
A well-functioning commodity market contributes to the overall stability of the economy. It helps balance supply and demand, ensuring that resources are efficiently allocated. In India, where agriculture is a key part of the economy, the commodity market helps farmers secure fair prices for their crops, leading to greater economic stability in rural areas.
The commodity market significantly impacts the economy by supporting industries that rely on raw materials. For instance, industries like manufacturing, energy, and agriculture rely on the smooth functioning of the commodity market. These industries contribute to GDP growth, create jobs, and drive economic progress.
Apart from producers and buyers, the commodity market also attracts investors. People invest in commodities like gold, silver, or crude oil to diversify their portfolios and hedge against inflation. Commodities are seen as a safe investment, especially in times of economic uncertainty. Investing in commodities can provide stability when stock markets are volatile.
Commodities are traded internationally, and the commodity market helps facilitate global trade. Countries rich in natural resources, like oil or metals, can export them to countries that need them. This fosters international relationships and creates a flow of goods, services, and capital between countries.
Commodity prices can have a direct impact on inflation. For example, if crude oil prices increase, the cost of transportation, manufacturing, and goods increases, which leads to inflation. Conversely, when commodity prices drop, inflation may decrease as the cost of goods goes down. Governments and central banks often monitor commodity prices to gauge inflationary trends in the economy.
India has a long history of trading commodities, particularly agricultural goods. With a large population dependent on agriculture, the commodity market plays a significant role in stabilizing farmers' incomes and ensuring that consumers have access to essential products at fair prices.
India is one of the largest producers of agricultural products like wheat, rice, and cotton. The commodity market helps stabilize prices and allows farmers to manage risks by using futures contracts. This helps reduce uncertainty and ensures that farmers receive a fair price for their produce.
Gold and silver are some of the most traded commodities in India. Gold is not only seen as a symbol of wealth but also as a hedge against inflation and economic instability. Indians often invest in gold during times of financial uncertainty.
India is a major importer of crude oil, and the energy sector heavily depends on commodity markets to manage price fluctuations. The prices of petrol, diesel, and electricity are directly influenced by crude oil prices in the global commodity market.
Despite its importance, the commodity market faces several challenges:
The commodity market is expected to grow as more people become aware of its importance and potential. As India continues to modernize, the demand for commodities will increase, making it even more essential for producers and investors to utilize this market for price discovery, risk management, and economic stability.
Additionally, technological advancements such as digital trading platforms are making it easier for more participants to join the market. This is likely to improve market efficiency and accessibility.
The commodity market is an essential part of the economy, helping to balance supply and demand, manage price risks, and provide investment opportunities. It supports key industries like agriculture, manufacturing, and energy, while also influencing inflation and global trade. In India, the commodity market plays a critical role in stabilizing prices and promoting economic growth. Understanding how the commodity market works can help producers, investors, and consumers make more smart decisions, ultimately contributing to a more stable and prosperous economy.
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